One of the first things you need to sort out when you arrive in Australia is a Tax File Number, also known as a TFN. This is basically Australia’s way or ensuring that companies and employees are contributing their tax correctly.
Your TFN is yours for life even if you change jobs, move interstate or leave the country. Thankfully, such a vital piece of data is pretty straightforward to get and should mean once you begin to work down under you won’t get taxed harshly.
A Tax File Number (TFN) is a unique identifier issued by the Australian Taxation Office (ATO) to each taxpaying entity which includes individuals and companies as well as superannuation funds, partnerships or even trusts. The TFN was initially brought in as a better means for the ATO to organise itself but now it’s used for income and other data matching, a bit like national insurance. This means that TFNs may be recorded or used only for specifically authorised tax-related purposes. Basically, the nine digit number contains a lot of information and is crucial for the ATO to work out who’s paying what tax.
When you begin to work in Australia you should give your employer a TFN declaration. This helps them work out how much tax to withhold from your pay and your employer will check which working holiday visa you are on, which will likely be the subclass 417. You might as well tell them anyway to ensure they tax you correctly.
Backpacker Tax = Cash For Travel
Put simply, each backpacker needs to have a TFN so they can get work and get their tax return when they leave. Thankfully, you can leave it to us to organise your TFN so you can focus your efforts on working hard, earning those dollars and enjoying the Australian lifestyle.
Do I need a Tax File Number?
Short answer, yes. One requirement for working in Australia is that you have to get a TFN before you start your first job to ensure that you will be taxed correctly, you can even apply for one once you receive your visa. Of course, some employers will work cash in hand and you may just want to volunteer. However, if you do want to be paid in a legitimate job you will need a TFN or you will pay more tax and you will struggle to find work.
Gimme one then
When you arrive in Australia, we’ll collect some info from you and set up your TFN for you. You’ll need this and your Zuper membership account number to give to your employers once you begin working. When you’re ready to leave Australia, we’ll help you file your tax return or if you stay, we’ll help you file for a tax refund. Simple.